The most common question associated with the Business Credit Builder Program is "what type of business credit will be available to a business owner with a newly formed entity that does not require a personal guarantee?"  Good question!  The lines of business credit we begin with are carefully chosen based upon the following criteria -

1. The business line of credit must report to the major business credit reporting bureaus.

2. The business line of credit must report positive credit experiences to the major credit reporting  bureaus. (many business lines of credit only report late or missed payments)

3. The business line of credit must report on a monthly basis to the business credit reporting bureaus. 

Additional considerations for choosing vendors exist of course, but these three examples provide insight into the knowledge our Credit Coaches have access to that insure our clients have a positive credit building experience.  Not only do we recommend the vendors, we have the applications available to insure our clients are truly put on the "fast track" to building corporate credit. 

Assisting our clients in establishing the initial set of vendors provides them with the momentum needed to generate the purchase / payment activity.

Purchase / Payment Activity = Vendor Reporting Activity = Credit Score

The Credit Coach supports the process through regular follow up and additional vendor recommendation.   

Next Week - Vendor Progress Tracking

Compliance - the act of adhering to, and demonstrating adherence to, a standard or regulation. Compliance is KEY in the business credit building process and can make the difference between a client’s ability to establish lines of business credit or being declined. Potential vendors and commercial lenders seek to verify and validate specific information when a corporation submits an application for business credit. The most common compliance issues a corporation must address before applying for business credit is as follows:

Please accept my thanks and appreciation for the opportunity to share the knowledge NCH has afforded me the opportunity accumulate on Building Business Credit.   I look forward to sharing my experience through the use of this weekly post in an effort to raise awareness about Business Credit.